BLR310 Theme 2 Class Quiz

Is this statement TRUE or FALSE: Transfer Duty is an example of an indirect tax which is levied on a person

• True

• False

Answer explanation

Transfer Duty is classified as an indirect tax and indirect taxes are levied on THE TRANSACTION (not the person).

In South Africa, which government department is in charge of the drafting and enactment of tax law?

• Department of Trade and Industry

• SARS

• National Treasury

• The Presidency

Answer explanation

National Treasury is in charge of drafting and enacting tax laws, while SARS is in charge of the ADMINISTRATION of these tax laws.

Is this statement TRUE or FALSE: With withholding tax, the burden (the tax liability) falls to the person withholding the taxes .

• True

• False

Answer explanation

Transfer Duty, Estate Duty, Donations Tax and Securities Transfer Tax are all categorised as a "wealth" tax base. There is however, no a direct "wealth tax" in South Africa.

The Tax Court is not a court of law and its judgments are therefore only binding on the parties in the specific case.

• True

• False

What line item is missing from the Framework for calculating taxable income and normal tax payable for a normal person?

• VAT

• Gross Income

• Taxable Capital Losses

• Deductions and Allowances